Commercial boilers typically need to produce more hot water and heat than a residential boiler, so they tend to be more expensive.
This is especially true when a large, complex boiler system is needed, such as for a large building. The costs will rise further if modifications, upgrades or repairs are needed for the existing pipework. As a rough rule, expect to pay between about £6,000 for a small, relatively simple upgrade and as much as £50,000 for a large boiler with a complex installation. Here’s a more detailed explanation of the factors determining the final cost.
The type and size of the boiler
Boilers are typically rated for power in kilowatts (kW) or British Thermal Units (BTU). More powerful boilers generally cost more, but such a boiler may be essential to meet your operational needs. For a smaller commercial space, say 200 square metres or less, a new boiler might cost around £7,000. This increases with the size of the space as a boiler with a greater BTU output is required, possibly costing up to £25,000 or even exceeding £50,000 in some cases.
Like with residential boilers, commercial boilers can run on different fuels. Gas will generally be the preferred option, but the location needs to have access to the gas mains. For off-grid locations, an oil boiler will generally be more suitable, but this requires a large tank to store oil between deliveries, adding an extra cost if one isn’t already present. Boilers fuelled by liquid petroleum gas (LPG) present another option. These work from pre-filled tanks that are delivered and taken away, so no permanent tank is required, but the logistical considerations may be more complicated.
Installation costs
In an ideal case, a new boiler will simply replace the existing boiler and connect to the existing system. Even in this case, though, the installation cost may vary based on the region and particular firm or contractor you use. Furthermore, if the boiler is located in a space that’s awkward to access, it may add to the installation time and therefore the cost.
In addition, changes to pipework and valves may be needed. For example, you may want to move the boiler to a different location, or your operational requirements may have changed. Some elements of the system may have reached the end of their serviceable life and need replacement. What’s more, regulations evolve over time, so while an existing system may have been compliant when it was installed, some modifications may be needed before an engineer can certify the new installation. Such changes require additional parts and labour, adding to the cost of installation.
Further considerations
Not all installations go quite as planned in reality. For example, the installer may find that an existing chimney presents the only route for the flue. In this case, the chimney needs to be lined with stainless steel, and scaffolding may also be needed for chimney access.
You may also want to add a new control and monitoring system or make efficiency improvements to the system. These can add substantially to the upfront costs, although they may lead to savings in the long term.
There may also be unexpected discoveries during installation, such as finding asbestos that needs to be safely removed before work can progress. Some remedial building work may also be needed after installation, or you may just want to give the plantroom a fresh coat of paint. The downtime during an installation may also incur a cost for business, especially for a complex installation, although this can be mitigated by scheduling it for a quieter period.
Ongoing costs
You also of course need to factor in recurring costs over the long term. The most obvious of these is the cost of the fuel to run it. Fortunately, newer boilers tend to be more efficient thanks to technological improvements over recent years. Note that that different fuels are subject to different market dynamics, so this can also have a bearing on the running costs.
Boilers are machines with moving parts and other components, so it’s inevitable that they can break down. Nevertheless, breakdowns lead to unexpected downtime, which can be very expensive for a business. This can be mitigated by paying to have the boiler serviced regularly to ensure it is working reliably, safely and efficiently.
Xgas and its certified, highly skilled engineers can install a commercial boiler and all necessary pipework in a transparent process that suits your budget and requirements. Get in touch to arrange an initial consultation and estimate for your commercial space.